Consolidated Diluted Earnings Per Share Allocated to Subsidiaries
Diluted EPS
--------------------
Three Months Ended
March 31
--------------------
Subsidiary 2008 2007
--------- ---------
Cleco Power LLC $ 0.46 $ 0.21
Cleco Midstream Resources LLC (0.08) (0.08)
Corporate and Other(1) (0.01) 0.01
--------- ---------
Earnings applicable to common stock $ 0.37 $ 0.14
(1) Includes dividends on preferred stock
Results for First-Quarter 2008:
Major Reconciling Items for First-Quarter EPS 2008 vs. 2007:
$0.14 2007 First-Quarter Diluted EPS
0.01 Gains on energy hedging, net
0.06 Lower Cleco Power expenses
0.18 Higher Cleco Power AFUDC
(0.02) Lower corporate results
-----
$0.37 2008 First-Quarter Diluted EPS
Cleco Power's 2008 first-quarter earnings - up $0.25 per share
year over year
-- Kilowatt-hour sales were essentially even with last year's results.
First quarter 2008 kilowatt-hour sales were down 2 percent from the
same period a year ago largely due to lower usage from industrial
customers. Heating degree-days for the quarter were 6 percent below
2007 first quarter levels and were 17 percent below normal.
For the three months
(Million kWh) ended March 31
------------------------
2008 2007 Change
------- ------- ------
Electric Sales
Residential 840 842 --
Commercial 554 543 2 %
Industrial 686 710 (3)%
Other retail 32 33 (3)%
------- ------- ------
Total retail 2,112 2,128 (1)%
Sales for resale 71 102 (30)%
Unbilled (57) (70) 19 %
------- ------- ------
Total retail and wholesale customer sales 2,126 2,160 (2)%
-- Mark-to-market and realized gains on energy hedging positions tied
to a fixed-price wholesale contract as compared to the same period
of 2007 contributed to a $0.01 per share increase primarily due to
increases in natural gas prices.
-- Operating and maintenance expenses were $0.06 per share lower
compared to the same period last year, primarily due to lower
compensation and benefit expense as well as lower generation
maintenance expense and lower professional fees.
-- AFUDC primarily associated with the Rodemacher Unit 3 project,
contributed $0.18 per share more to results. The equity portion of
AFUDC associated with the Rodemacher Unit 3 project was up $0.14 per
share, while the debt portion of AFUDC contributed $0.04 per share
more than in the first quarter of 2007.
Cleco Midstream Resources' 2008 first-quarter earnings - unchanged quarter
over quarter
Evangeline was down $0.03 per share for the first quarter of 2008 mainly
due to the February planned outage. This was offset by a decrease in
losses at Acadia largely due to lower interest paid to the holding company
during the first quarter of 2008.
Other
Corporate earnings decreased $0.02 per share in the quarter-to-quarter
comparison primarily due to lower affiliate interest received from Acadia.
Earnings Guidance
"We are maintaining our 2008 earnings target at a range of $1.60 to $1.70
per share," Madison said. "Those targets assume normal weather, 2008
capital expenditures of about $265 million on the Rodemacher project
(including AFUDC), and the continuation of our current rate plan. Cleco
Midstream earnings targets assume continued performance by Evangeline's
tolling counterparty and are based on assumptions about Acadia's plant
operations and market conditions."
Strategic Update
"We continue to achieve impressive results," said Madison.
"After nearly two years of persistent work, we have completed the first
ever utility securitization in the State of Louisiana. The financing
resulted in the issuance of approximately $180 million initial principal
amount of storm recovery bonds to recover the remainder of Cleco Power's
unrecovered 2005 storm costs from hurricanes Katrina and Rita, with
approximately $50 million being used to fund a storm reserve for future
storms," Madison said.
"Additionally, we continue to advance through the long-term RFP process and
are on schedule to select winning bids in August of 2008. Also, on the
regulatory front, we are working diligently to prepare to file our rate
case by the end of the second quarter of 2008 with rates anticipated to
coincide with commercial operation of Rodemacher Unit 3," said Madison.
"This will be our first full rate case in more than 20 years."
"Finally, we continue to move forward in collaboration with our neighboring
utilites, as well as the Southwest Power Pool, and the Louisiana Public
Service Commission to develop a comprehensive transmission solution for the
southern part of our service territory," Madison concluded.
Cleco management will discuss the company's first-quarter 2008 results
during a conference call scheduled for 11 a.m. Eastern time (10 a.m.
Central time) Wednesday, May 7, 2008. The call will be broadcast live on
the Internet. A replay will be available for 12 months. Investors may
access the webcast through the company's Web site at www.cleco.com by
selecting "For Investors" and then "Cleco Corporation First-Quarter 2008
Earnings Conference Call."
Cleco Corp. is a regional energy company headquartered in Pineville, La. It
operates a regulated electric utility company that serves 273,000 customers
across Louisiana. Cleco also operates a wholesale energy business with
approximately 1,350 megawatts of nameplate generating capacity. For more
information about Cleco, visit www.cleco.com.
CLECO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended March 31, 2008 2007
--------- ---------
Operating revenue
Electric operations $ 209,881 $ 213,020
Other operations 10,064 9,269
Affiliate revenue 2,606 1,461
--------- ---------
Operating revenue 222,551 223,750
Operating expenses
Fuel used for electric generation 45,536 55,496
Power purchased for utility customers 89,794 84,147
Other operations 22,275 26,315
Maintenance 10,113 10,241
Depreciation 19,547 20,098
Taxes other than income taxes 8,831 9,799
Gain on sales of assets (99) --
--------- ---------
Total operating expenses 195,997 206,096
--------- ---------
Operating income 26,554 17,654
Interest income 1,617 2,567
Allowance for other funds used during construction 13,683 5,131
Equity loss from investees (4,574) (1,399)
Other income 66 89
Other expense (669) (1,266)
Interest charges
Interest charges, including amortization of debt
expenses, premium and discount, net of capitalized
interest 14,121 13,657
Allowance for borrowed funds used during
construction (4,577) (1,670)
--------- ---------
Total interest charges 9,544 11,987
--------- ---------
Income before income taxes 27,133 10,789
Federal and state income tax expense 5,061 2,143
--------- ---------
Net income 22,072 8,646
Preferred dividends requirements, net of tax 12 423
--------- ---------
Net income applicable to common stock $ 22,060 $ 8,223
========= =========
CLECO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended March 31, 2008 2007
---------- ----------
Average shares of common stock outstanding
Basic 59,907,896 57,854,737
Diluted 60,083,024 58,198,391
Basic earnings per share
From continuing operations $ 0.37 $ 0.14
Net income applicable to common stock $ 0.37 $ 0.14
Diluted earnings per share
From continuing operations $ 0.37 $ 0.14
Net income applicable to common stock $ 0.37 $ 0.14
Cash dividends paid per share of common stock $ 0.225 $ 0.225
CLECO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands)
(UNAUDITED)
At At
March 31, Dec. 31,
2008 2007
----------- -----------
Assets
Current Assets
Cash and cash equivalents $ 108,934 $ 129,013
Accounts receivable, net 91,781 87,983
Other current assets 194,020 188,520
----------- -----------
Total Current Assets 394,735 405,516
Property, plant and equipment, net 1,815,284 1,725,880
Equity investment in investees 253,056 258,101
Prepayments, deferred charges and other 469,763 317,126
----------- -----------
Total Assets $ 2,932,838 $ 2,706,623
----------- -----------
Liabilities
Current Liabilities
Long-term debt due within one year $ 108,350 $ 100,000
Accounts payable 115,423 129,946
Other current liabilities 174,325 127,521
----------- -----------
Total Current Liabilities 398,098 357,467
Deferred credits and other liabilities 653,179 568,684
Long-term debt, net 861,025 769,103
----------- -----------
Total Liabilities 1,912,302 1,695,254
----------- -----------
Shareholders' Equity
Preferred stock 1,029 1,029
Common shareholders' equity 1,027,916 1,018,731
Accumulated other comprehensive loss (8,409) (8,391)
----------- -----------
Total Shareholders' Equity 1,020,536 1,011,369
----------- -----------
Total Liabilities and Shareholders' Equity $ 2,932,838 $ 2,706,623
=========== ===========
Please note: In addition to historical financial information, this news
release contains forward-looking statements about future results and
circumstances, including, without limitation, statements regarding the
Rodemacher Unit 3 project and earnings guidance. There are many risks and
uncertainties with respect to such forward-looking statements, including
the weather and other natural phenomena, state and federal legislative and
regulatory initiatives, the timing and extent of changes in commodity
prices and interest rates, the operating performance of Cleco Power's and
Cleco Midstream's facilities, the financial condition of the company's
tolling agreement counterparty, the performance of the tolling agreement by
such counterparty, construction and operational startup of Rodemacher Unit
3, the continuation of the existing rate plan, the outcome of Cleco Power's
rate case, the results of Cleco Power's long-term RFP, and other risks and
uncertainties more fully described in the company's latest Annual Report on
Form 10-K and Quarterly Report on Form 10-Q. Actual results may differ
materially from those indicated in such forward-looking statements.
Contact Information: Investor Contacts: Cleco Corporation: Ryan Gunter (318) 484-7724 Rodney J. Hamilton (318) 484-7593 Analyst Inquiries: Dresner Companies: Kristine Walczak (312) 780-7205 Media Contact: Cleco Corporation: Fran Phoenix (318) 484-7467